Inventory - Agribusiness

Inventory is recorded as which of the following on the company's balnce sheet?

• Asset

• Expense

• Liability

• Cost

Which of the following principles requires the amounts recorded in the accounts and on the financial statements to be the actual cost of an item rather than the current value of the item?

• Asset principle

• Inventory principle

• Cost principle

• Accuracy principle

A company only updates their inventory at the end of the year and associates the oldest costs first with the cost of goods sold. Which of the following best describes this scenario?

• Periodic FIFO

• Periodic LIFO

• Periodic Average

• Perpetual FIFO

Which of the following is an inventory method which requires a business to identify each good with the good's cost of goods sold?

• LIFO

• FIFO

• Average

• Specific Identification

Which of the following accounts is created when production labor costs are recorded?

• Overhead cost pool

• Wages expense

• Raw materials inventory

• Merchandise inventory

When a good is completed it is moved from work-in-progress inventory to which of the following?

• Raw goods inventory

• Finished goods inventory

• Overhead inventory

• Overhead cost pool

Using the information in the table, which of the following would be the cost of goods sold in a FIFO cost flow assumption if one ring was sold?

• $20

• $21.50

• $22

• $23

Using the information in the table, which of the following would be the cost of goods sold in a LIFO cost flow assumption if one ring was sold?

• $20

• $21.50

• $22

• $23

Using the information in the table, which of the following would be the cost of goods sold in an average cost flow assumption if one ring was sold?

• $20

• $21.50

• $22

• $23

Which of the following is a subsidiary ledger for specific inventory?

• Liability record

• Expense report

• Stock record

• Stock entry